ABC analysis of inventory ___________.
A)applies activity-based costing to managing inventory
B)recognizes that inventories are not of equal value to a firm
C)is synonymous with vendor-managed inventory
D)is an alternative to the EOQ model

Question

Quizplus · Accepted Answer

ABC analysis of inventory is a technique that categorizes inventory items based on their importance to the business, recognizing that not all inventory items have the same value or impact on the firm's operations or profitability. This approach helps businesses prioritize their inventory management efforts, focusing more on the most valuable items.

ABC Analysis of Inventory ___________